The U.S. Census Bureau reported (opens pdf) today on the developments in number of new homes sold in the U.S during March 2013: the number of new homes sales declined compared with the number of new homes sold during February 2013. The recent rise in the number of homes sold show the progress in the housing market continues. Let’s analyze the effect this news may have had on commodities and stocks markets on Wednesday.
According to the latest report, during March 2013 the annual rate of number of U.S new home sales reached 411,000 (seasonally adjusted); this figure is 1.5 percent above the revised annual rate in February 2013 of 352,000 sales, and it is still 18.5% above the annual rate in March 2012.
The median sales price of new dwellings sold in March 2013 declined to reach $247,000. In February, the median sales price was $264,900 but in March 2012 the price was 239,800 – this represents a 3% gain in price compared to the same time last year.
This news didn’t seem to stir up the financial markets including the U.S stock markets as the NASDAQ and S&P500 slightly increased while the Dow Jones slightly fell. Moreover, during the day many commodities including gold, oil and silver were traded sharply up.
This report tends to be negatively correlated with precious metals (that should be taken with a grain of salt) and as the number of houses sold rise, the prices of precious metals tend to fall.
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